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Rent Controls in Ontario: Roofs or Ceilings?

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  • Lawrence B. Smith
  • Peter Tomlinson

Abstract

This paper describes the rent control program in Ontario and discusses the consequences of these controls. It indicates that rent controls caused both a small nominal decline and a large real decline in the per unit value of rental apartments, substantially reduced new rental housing starts, generated a rental housing shortage, created a dual market with significant rent differences between the controlled and uncontrolled (new construction) sectors, and imposed large costs on government in the form of foregone tax revenues and increased rental housing subsidies. The paper also indicates some of the political responses to the developing economic effects, such as the imposition of additional land use controls and increased government spending programs to stimulate new rental construction.

Suggested Citation

  • Lawrence B. Smith & Peter Tomlinson, 1981. "Rent Controls in Ontario: Roofs or Ceilings?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 9(2), pages 93-114, June.
    • Handle: RePEc:bla:reesec:v:9:y:1981:i:2:p:93-114
    DOI: 10.1111/1540-6229.00234
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    Cited by:

    1. Kholodilin, Konstantin A., 2024. "Rent control effects through the lens of empirical research: An almost complete review of the literature," Journal of Housing Economics, Elsevier, vol. 63(C).
    2. Konstantin A. Kholodilin, 2022. "Rent Control Effects through the Lens of Empirical Research," DIW Roundup: Politik im Fokus 139, DIW Berlin, German Institute for Economic Research.
    3. J.R. Miron, 1990. "Security of Tenure, Costly Tenants and Rent Regulation," Urban Studies, Urban Studies Journal Limited, vol. 27(2), pages 167-183, April.
    4. Raymond Jackson, 1993. "Rent Control and The Supply of Housing Services: The Brookline Massachusetts Experience," American Journal of Economics and Sociology, Wiley Blackwell, vol. 52(4), pages 467-475, October.
    5. Konstantin A. Kholodilin, 2022. "Rent Control Effects through the Lens of Empirical Research: An almost Complete Review of the Literature," Discussion Papers of DIW Berlin 2026, DIW Berlin, German Institute for Economic Research.
    6. John R. Miron, 1995. "Private Rental Housing: The Canadian Experience," Urban Studies, Urban Studies Journal Limited, vol. 32(3), pages 579-604, April.
    7. Thomas S. Nesslein, 1988. "Housing : The Market Versus the Welfare State Model Revisited," Urban Studies, Urban Studies Journal Limited, vol. 25(2), pages 95-108, April.

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